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loss on the sale of a plant will be included in net profit or loss, but the cash flows
will be classed as investing.
Operating activities also include all transactions and other events that are not
defined as investing or financing activities.
Cash inflows from operating activities are:
a)
Cash receipts from sales of gods or services, including receipts from
collection of receivable balances and both short and long-term notes
receivable from customers arising from those sales.
b)
Cash receipts from returns on loans, other debt instruments other entities,
and equity securities interest and dividends (alternatively may be
classified as investing cash flow).
c)
All other cash receipts that do not stem from transactions defined as
investing or financing activities.
Cash outflows for operating activities are:
a)
Cash payments to acquire materials for manufacture or goods for resale,
including principal payments on accounts and both short-and long-term
notes payable to suppliers for those materials or goods.
b)
Cash payments to other suppliers and employees for other goods or
services.
c)
Cash payments to governments for taxes should be classified as cash
flows from operating activities unless they can be specifically identified
with financing and investing activities. Taxation cash flows are often
difficult to match to the originating underlying transaction, so most of the
time and all tax cash flows are classified as arising from operating
activities.
d)
Cash payments to lenders and other creditors for interest (alternatively
these may be classified as financing cash flows).
e)
Al other cash payments that do not stem from transactions defined as
investing or financing activities.
CONTENTS AND FORM OF THE STATEMENT
A statement of cash flows should report:
a)
Net cash provided or used by operating, investing, and financing
activities
b)
The net effect of those flows on cash and cash equivalents during the
period in a manner that reconciles beginning and ending cash and cash
equivalents.
Reporting cash flows from operating activities
The standard offers a choice of method for this part of the statement of cash
flows.
a)
Direct method: disclose major classes of gross cash receipts and gross
cash payments.
b)
Indirect method: net profit or loss is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or future operating
cash receipts or payments, and items of income or expense associated
with investing or financing cash flows.
The direct method is the preferred method because it discloses information, not
available elsewhere in the financial statements, which could be of use in
estimating future cash flows.
Direct method Under this method, enterprises are encouraged to report major
classes or gross cash receipts and gross cash payments and their arithmetic sumthe net cash flow from operating activities. At a minimum, the following classes
of operating cash receipts and payments should be separately reported:
a)
cash collected from customers;
b)
interest and dividends received;
c)
other operating cash receipts, if any;
d)
cash paid to employees and other suppliers of goods or services,
including suppliers of insurance, advertising, an the like;
e)
interest paid;
f)
income taxes paid;
g)
other operating cash payments, if any;
Enterprises are encouraged to provide further breakdown of operating
cash receipts and payments that they consider meaningful; for example,
a retailer or manufacturer might decide to further divide cash paid to
employees and suppliers into payments for costs of inventory and
payments for selling, general, and administrative expenses.
Indirect method-Net cash flow from operating activities may also be reported
under the indirect method by adjusting net income to reconcile it to net cash
flow from operating activities. This requires adjusting net income to remove the
effects of:
a)
all deferrals of past operating cash receipts and payments, such as
changes during the period in inventory and deferred income;
b)
all accruals of expected operating cash receipts and payments, such as
changes during the period in receivables and payables;
c)
items whose cash effects are investing cash flows, such as depreciation,
amortization of goodwill, and gains and losses on sales of property, plant,
and equipment and discontinued operations; and
d)
items whose cash effects are financing cash flows, such as gains and
losses on extinguishments of debt.
The reconciliation of net income to net cash flow from operating activities
should separately report all major classes of reconciling items. The
reconciliation may be either reported within the statement of cash flows
or provided in a separate schedule, with the statement of cash flows
reporting only the net cash flow from operating activities. In addition, if
the indirect method is used, amounts of interest paid (net of amounts
capitalized) and income taxes paid during the period should be provided
in related disclosers.
It is important to understand why certain items are added and others
subtracted. Note the following points:
a)
Depreciation is not a cash expenses, but is deducted in arriving at the
profit figure in the statement of comprehensive income. I make sense,
therefore, to eliminate it by adding it back.
b)
By the same logic, a loss on a disposal of a non-current asset (arising
through under provision of depreciation) needs to be added back and a
profit deducted.
c)
An increase in inventories means less cash you have spent cash on
buying inventory.
d)
2009
(Rupees)
2008
(Rupees)
x
x
(x)
(x)
x
x
x
xx
XX
x
(x)
(x)
(x)
x
x
(x)
xx
XX
x
(x)
x
x
x
(x)
x
(x)
x
XX
x
x
x
XX
(x)
(x)
(x)
(x)
(XXX)
(x)
(x)
(x)
(x)
XXX
(x)
x
x
x
XXX
(x)
x
x
x
(XXX)
x
(x)
x
XXX
XXX
x
x
(x)
XXX
(XXX)
(XX)
XXX
XX
(XXX)
x
(x)
(x)
XX
X
(x)
(x)
XX
Investment in associate
B/F
xxx
xxx
Cash
P&L
xxx
xxx
C/D
B/F
Impairment charged in
P&L
Adjustment in cash flow
from operating activities
Goodwill
xxx xxx P &
L
xxx
C/D
xxx
xxx
P&L
Investm
ent
P&L
Gain or loss booked in P&L
- Adjustment in cash flow
from operating activities
Disposal
xxx xxx Cash
xxx
xxx
P&L
Business Purchase and Sale accounts incorporate the effect of the purchase or
disposal:
Dr. Asset & Cr. Business Purchase Account
OR
Dr. Business Sale
Account & Cr. Asset
With FV of asset on DOA
Dr. BPA & Cr. Liability
OR
Dr. Liability & Cr.
BSA
With FV of liability on DOA
The balancing figure will be the net assets of the subsidiary on the Date
Of Acquisition (DOA) and are to be allocated to NCI and CRE.
PRACTICE QUESTIONS
Question #1 Investment acquired during the year
Following is the information concerning the Investor Group for the year ended
December 31, 20X3
Consolidated Income statement
20X3
20X3
Rs.
Rs.
(000)
(000)
Profit from operations
Group
16,600
Associates
980
17,580
Income tax expense
Group
7,900
Associates
420 (8,320)
Profit after tax
9,260
Non controlling interest
(1550)
Group profit for the year
7,710
Consolidated statement of changes in equity
20X3
Rs.
(000)
Opening balance at 1-1-20X3
21,845
Profit for the year
7,710
Dividend paid
(2,100)
New shares issued
2,000
29,455
Consolidated balance sheet
20X3
20X3
20X2
20X2
Rs.
Rs.
Rs.
Rs.
(000)
(000)
(000)
(000)
Non-current assets
Investment in associates
6,200
5,700
Goodwill on acquisition
680
280
Property, plant and
21,200
28,080
16,900
22,880
equipment
Current assets
Inventories
16,600
12,200
Receivables
15,000
9,300
Cash
50
31,650
1,445
22,945
59,730
Capital and reserves
45,825
Issued capital
Share premium
Accumulated profits
Non controlling interest
Long term loans
Current liabilities
Trade payables
Taxation
Bank overdraft
14,000
2,645
12,810
7,700
9,100
3,620
29,455
8,200
1,655
20,420
59,730
13,000
1,645
7,200
5,800
4,900
1,400
21,845
6,600
5,280
12,100
45,825
Notes
1
On July 01, 20X3 the Investor Group acquired 80% of the issued share
capital of Vulnerable Limited, whose net assets at the date were as
follows:
Rs.
(000)
Property, plant and equipment
2,600
Inventories
900
Receivables
980
Cash
200
Trade payables
(1,380)
Tax
(300)
3,000
2
3
58,300
20W9
Rs. (000)
51,350
25,000
21,000
6,000
52,000
50,000
23,000
19,000
2,000
103,350
Capital and reserves
Issued capital
Accumulated profits
Non controlling interest
Long term loans
Current liabilities
Trade payables
Taxation
Bank overdraft
20,000
38,300
18,500
6,000
6,000
58,300
5,050
9,500
30,500
103,350
Notes
1
20W9
Rs. (000)
44,000
94,000
20,000
29,500
16,250
5,000
5,000
49,500
5,750
12,500
26,250
94,000
On June 30, 20X0 the JCN disposed off its investment in Pear a
subsidiary in which it had a shareholding of 80%. The proceeds were
Rs. 5.5 million. Details of disposal were as follows: Rs.
(000)
Property, plant and equipment
4,000
Inventories
2,000
Receivables
2,500
Trade payables
(1,500)
Bank overdraft
(200)
Tax
(300)
Long term loan
(500)
6,000
2
JCN had acquired its investment on June 30, 20V8 for Rs.1.9 million
when the net assets of Pear were Rs. 2 million. Goodwill was found to
be impaired several years ago and so was fully written off before the
start of current year.
3
Depreciation charged during the year in the consolidated income
statement amounted to Rs. 10.1 million. There were no disposal of
property, plant and equipment by the group other than those
effectively made upon disposal of the investment in the Pear.
Required: - Prepare Cash flow statement for the Investor Group
Answers to Examples
E-1
INVESTOR GROUP
CONSOLIDATED STATEMENT OF CASHFLOWS
FOT R THE YEAR ENDED DECEMBER 31, 20X3
Rs.
17,580
(980)
Depreciation
2,200
1,220
18,800
(3,500)
Increase in Receivable
(4,720)
Increase in Payable
520
(7,700)
11,100
Taxes paid
(4,000)
7,100
(2,600)
60
PPE Acquired
(3,900)
6,440
(2,100)
2,000
(3,625)
Dividend NCI
Increase/(Decrease) in cash & cash equivalents
(550)
(4,275)
(3,615
45
(3,570)
W-1
Investment in Associates
Rs.
b/f
P&L
5,700
980
Rs.
Cash/dividend receipts
Tax
60
420
c/d
____
6,680
W-2
4,000
b/f
4,900
c/d
9,100
B.P.
300
P&L
7,900
_____
13,100
b/f
6,600
550
P&L
1,550
8,200
8,700
B.P.
1,600
8,700
b/f
7,200
P&L
7,710
_____
13,100
W-3
NCI
Dividend
c/f
W-4
CRE
Dividend
c/d
W-5
2,100
12,810
_____
14,910
_____
14,910
Goodwill
b/f
280
COC
400
c/f
___
680
W-6
W-7
W-8
6,200
____
6,680
680
___
680
PPE
b/f
16,900
B.P.
2,600
Cash
3,900
23,400
Dep.
2,200
c/d
21,200
23,400
c/d
16,600
16,600
Inventories
b/f
12,200
B.P.
900
Cash
3,500
16,600
Receivables
W-9
b/f
9,300
B.P.
980
Cash
4,720
15,000
c/d
15,000
15,000
b/f
5,800
B.P.
1,380
7,700
____
7,700
Cash
520
____
7,700
1,380
PPE
2.600
O/B
50
1,445
(3,620)
3,570
(1,400)
3,570
Cash
Bank O.D.
c/f
W-11 Business Purchase Account
Payable
Tax
COCA
300
Inventory
900
2,400
REC
980
600
Cash
200
NCI
____
4,680
____
4,680
2,800
Business Purchase
2,400
Goodwill
400
____
2,800
____
2,800
E-2
JCN GROUP
CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE YEAR ENDED JUNE 30, 20X0
Rs.(000)
19,300
Rs. (000)
Gain on disposal
(700)
F. Cost
1,400
Depreciation
O. Profit before W.C. Changes
10,100
10,800
30,100
(4,000)
Receivable
(4,500)
Payable
3,750
(4,750)
25,350
Taxes paid
(5,200)
20,150
5,700
(15,450)
9,750
9,750
(1,400)
Dividend paid
(3,000)
Dividend NCI
(500)
L.T. Loans
(2,500)
7,400
Disposal
Rs.
Net Assets
P&L
Rs.
6,000
Cash
5,500\
700
NCI
1,200
____
6,700
W-2
300
Cash
5,200
c/d
6,000
_____
11,500
b/f
5,000
P&L
6,500
_____
11,500
CRE
Dividend
c/d
W-4
____
6,700
Tax expenses
Banks
W-3
3,000
(3,000)
-
NCI
3,000
b/f
29,500
38,300
40,300
PAT
11,800
40,300
Disposal
1,200
Dividend
500
c/d
W-5
W-8
1,000
5,050
6,750
50,000
____
6,750
4,000
Dep.
10,100
15,450
65,450
c/d
51,350
65,450
b/f
23,000
B.S.
2,000
Cash dividend
4,000
27,000
c/d
25,000
27,000
b/f
19,000
B.S.
2,500
Cash
4,500
23,500
c/d
21,000
23,500
Inventory
Receivables
W-9
PAT
B.S.
Cash
W-7
5,750
PPE
b/f
W-6
b/f
6,000
(6,000)
--
Opening
Balances
2,000
(5,000)
(3,000
L.T. Loan
B.S.
500
b/f
12,500
Cash
2,500
c/d
9,500
12,500
c/d
18,500
12,500
B.S.
1,500
b/f/
16,250
c/d
18,500
20,000
Cash
3,750
20,000
W-11 B. Sale
PPE
4,000
Payable
Inv.
2,000
N.OD
200
REC
2,500
Tax
300
L.T.L.
500
Disposal
____
8,500
1,500
6,000
____
8,500
PAST PAPERS
Q-1
Following is the consolidated balance sheet of Iqbal Limited as at June 30, 2007:
2007
2006
Rupees in
million
ASSETS
Non-Current Assets
Tangible fixed assets
2,142
1,927
343
305
Goodwill
2,485
2,232
Current Assets
Cash and bank
808
700
Investments
982
560
Trade receivables
1,128
1,168
Inventory
1,850
1,715
4,768
4,143
7,253
6,375
TOTAL ASSETS
505
600
55
140
2,670
3,970
238
4,208
450
600
2,480
3,530
200
3,730
300
420
75
55
940
900
950
720
600
450
180
100
2,670
2,170
7,253
6,375
TOTAL EQUITY AND LIABILITIES
Following further information has been extracted from the records:
(i)
Iqbal Limited has two subsidiaries i.e. Faiz Limited and Badar Limited.
(ii) The factory buildings of Faiz Limited and Badar Limited were
revalued during the year and the surplus arising on the revaluation
was credited to a revaluation reserve account.
(iii) Certain plant and machineries belonging to Faiz Limited, acquired
under finance lease arrangement, were capitalized at Rs. 50 million.
(iv) On September 30, 2006, equipment costing Rs. 55 million carried in
the books of Iqbal Limited at Rs. 35 million as at June 30, 2006 was
completely destroyed by fire. Insurance proceed of Rs. 40 million was
received on November 17, 2006. There was no other disposal of
tangible fixed assets in any of the three companies.
(v) Total depreciation in the consolidated profit and loss account
amounted to Rs. 314 million which included depreciation on leased
assets amounting to Rs. 38 million.
(vi) 80% of the paid-up capital of Faiz Limited was acquired during the
year for Rs. 110 million. The payment was made by issuing 5.5 million
ordinary shares of Rs. 10 each at 100% premium. The net assets of
Faiz Limited at the date of acquisition were as follows:
vii)
Rs. in
million
60
20
25
10
(25)
90
Provision made during the year, for current and deferred tax
amounted to Rs. 200 million and Rs. 20 million respectively.
(viii) Profit allocated to minority shareholders amounted to Rs. 35 million.
(ix) The details relating to dividend paid by Iqbal Limited for the year are
as follows:
2007
2006
Declared on June 15, 2007
June 15, 2006
Paid on
August 31, 2007 August 31, 2006
Amount
Rs. 180 million
Rs. 100 million
Required:
Prepare the consolidated cash flow statement for the year ended June 30, 2007.
Show necessary workings.
Q-2
The following balances were extracted from the Consolidated Income
Statement and Consolidated Statement of Financial Position of Karachi Group
Limited for the year ended June 30, 2010.
2010
Rs. (m)
Operating profit
189
Share of profit from associate
5
Financial charges
(14)
Profit before tax
180
Taxation
(65)
Profit for the year
115
Attributable to: Owners of the parent
100
Non-controlling interest
15
115
200
320
520
28
548
125
20
262
8
60
350
1,023
2009
Rs. (m)
Assets
Non-current assets
200 Property,
plant
and
equipments
250
450 Investment in associates
10 Intangible assets
460
120
Current assets
-- Inventories
287 Trade debtors and other
receivables
5 Short term deposits
50 Cash and bank
342
922 Total assets
iii)
2009
Rs. (m)
510
500
12
30
552
10
25
535
261
200
180
162
10
--
20
471
1,023
25
387
922
ii)
2010
Rs. (m)
Sales
Cost of products sold
Other operating income
Operating expenses
Financial expenses
Income tax expense
Profit for the year
Profit attributable to
Owners of the holding company
Non-controlling interest
2,500
300
2,800
550
500
Retained earnings
Non-controlling interest
5,950
3,600
235
120
440
210
4,688
145
10
3,970
35
30
2011
2010
Rs. in million
Assets
Property, plant and
equipment
Goodwill
Long term
receivables
Stock in trade
Trade debts
Other receivables
Cash and bank
balances
1,100
900
15
15
24
29
6,760
7,534
900
4,280
5,421
725
2,645
2,980
200
25
6,670
5,950
18,978
14,350
18,978
14,350
Following additional information is available:
During the year, BL sold goods amounting to Rs. 140 million to APL
at a margin of 25% of cost. 40% of the above amount remained
Required:
Prepare a consolidated statement of cash flows including all relevant notes for
Alpha Pakistan Limited for the year ended 30 September 2011 using the direct
method in accordance with International Financial Reporting Standards. (Ignore
corresponding figures.)
Q-4
Consolidated financial statements of Malik Group of companies (MGC) for the
year ended 31 December 2014 are presented below:
Consolidated statement of financial position as on 31 December 2014
Equity
Ordinary shares (Rs.
10 each)
2014
2013
Rs. in million
15,000
Retained earnings
17,550
Other reserves *
7,500
40,050
15,000
Non-current assets
Good will
Non-controlling
interest
3,100
3,200
Non-current liabilities
Loans from banks
Deferred tax
5,000
1,500
Current liabilities
Trade and other
payables
Income tax
Accrued interest
8,000
7,250
3,875
3,525
125
75
61,650 49,200
* Include revaluation reserve
2014
2013
Rs. in million
19,300
18,500
25,450
16,250
6,200
50,950
5,400
40,150
4,700
4,350
3,900
2,100
3,300
1,400
61,650
49,200
ii.
Rs. in
million
Property, plant and equipment
12,800
Inventory
1,500
Trade and other receivables
2,400
Cash and bank
800
Loan from banks
(400)
Trade and other payables
(1,800)
Income tax
(400)
14,900
During the year, MGC also disposed of its 60% shareholdings in Stone
Limited (SL) and realized cash proceeds of Rs. 8,500 million. This subsidiary
had been acquired several years ago for Rs. 6,000 million. At acquisition,
the fair value of SLs net assets and non-controlling interest was Rs. 7,300
million and Rs. 3,200 million respectively. On the date of disposal, the net
assets of SL had a carrying value in the consolidated statement of
financial position as follows:
Rs. in
million
iv.
7,250
1,650
1,500
500
(300)
(800)
9,800
Required:
Prepare consolidated statement of cash flow of MGC for the year ended 31
December 2014, using the indirect method.
(22)
Rs.(M)
625
48
(5)
314
357
982
65
(115)
205
155
1,137
(50)
1,087
(422)
40
10
(314)
(686)
(48)
(100)
(15)
(170)
(333)
68
(200)
(132)
Workings:
W.1:
Bal b/f
Revaluation
Reserve
Lease
Business Purchase
Cash
Tangible Asset
Rs.
1927 Disposal
Rs.
35
140 Depreciation
50
60
314
314
Bal c/d
2142
2491
2491
W.2:
Goodwill
Bal b/f
Cost of Control
A/c
Rs.
305
Rs.
38
Bal c/d
343
W.3:
Cash & Cash Equivalents:
Opening Bal.
Cash & Bank
Running Finance
343
343
Closing
Bal.
700
(900)
808
(940)
(200)
(132)
W.4:
Cash
Bal c/d
Finance Lease
Rs.
170 Bal b/d
Tangible Asset
300
470
Rs.
420
50
470
W.5:
Bal b/f
Business Purchase
Trade Receivables
Rs.
1168 Decrease in Asset
25
Bal c/d
Rs.
65
1128
1193
1193
W.6:
Bal b/f
Increase in Asset
Business Purchase
Inventory A/c
Rs.
1715
115
20
Bal c/d
1850
W.7:
Profit before Tax:
PBT
Tax
Profit After Tax
NCI
Parent Co
Dividend
Retained- Group
Bal b /f
Rs.
1850
1850
625
(220)
405
(35)
370
(180)
190
2480
2,670
W.8:
NCI
Rs.
Cash
Bal c/d
15 Bal b/f
Business Purchase
P&L
238
253
Rs.
200
18
35
253
W.9:
Tax Payable
Rs.
Cash
Bal c/d
50 Bal b/f
P&L
620
670
Rs.
450
220
670
W.10:
Bal c/d
Trade Payable
Rs.
Bal b/f
Increase in Liability
Business Purchase
950
950
Rs.
720
205
25
950
W.11:
Dividend
Rs.
Rs.
Cash
100
180
Bal c/d
180
280
280
W.12:
Disposal A/c
Rs.
Tangible Asset
P&L
Rs.
35 Cash
5
40
40
40
W.13:
Cost of Control A/c
Rs.
Share Premium
Share Capital
55 Business Purchase
55 Goodwill
110
Rs.
72
38
110
W.14:
Payable
Cost of Control
A/c
NCI
Rs.
60
72 Inventories
18 Receivables
Cash
20
25
10
175
A-2
Karachi Group Limited
Consolidated Statement of
Cash Flows For the year ended June 30, 2010
115
Rs. in
million
Cash flows from operating activities
Profit before tax
180.00
Adjustments for :
Share of profit in associates
Depreciation
Trade mark impairment (6*50%) Loss on
exchange of machine (6.5+1)-7
Financial expenses
Increase in inventories (261-10-200)
Increase in trade debtors and other receivables (180-8-162)
Decrease in trade creditors and other payables (262-17-287)
Cash generated from operating activities
Financial expenses paid* (5+14-8)
Income taxes paid (50+65-60)
Net cash from operating activities
*This may also be shown under financing activities
Cash flows from investing activities
Acquisition of subsidiary-Auto Engineering Works Ltd.(30-6)
Note 1
Purchase of property, plant and equipment
W1
Dividend received from associates (10+5-12)
Cash flows from financing activities
Proceeds from long term borrowings (125+20-120-5)
Dividend paid to controlling interest* (200*15%)
Dividend paid to non-controlling interest* 28-(10+15+5.5)
*these may also be shown under operating cash flow
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Note 3
Cash and cash equivalents at end of the period
Note 3
W-1 Purchase of property, plant and equipment
Balance - June 30, 2009
Depreciation for the year
WDV of asset given up in trade-in
Balance - June 30, 2010
Total additions for the year
Less : Additions against loan
Fair value of subsidiary's assets acquired
New machine price adjusted against old machine (7-1)
Additions against cash payment
Notes to the statement of cash flows
Note 1: Acquisition of subsidiary - Auto Engineering Works Limited
(5.00)
70.00
3.00
0.50
14.00
262.50
(51.00)
(10.00)
(42.00)
159.50
(11.00)
(55.00)
93.50
(24.00)
(55.00)
3.00
(76.00)
(20.00)
(30.00)
(2.50)
(12.50)
5.00
25.00
30.00
500.00
(70.00)
(6.50)
423.50
(510.00)
(86.50)
5.00
20.50
6.00
(55.00)
The control of a subsidiary, Auto Engineering Works Limited was acquired during
the year. The details of consideration paid, value of assets acquired and
liabilities assumed are as follows:
Rs. in million
24.00
20.50
10.00
8.00
6.00
(17.00)
27.50
20.50
5.00
6.00
55.00
(W-
86.50
Note 3: Cash and cash equivalents
Short term deposits
Cash and bank balances
A-3
2010 2009
10.00
20.00 25.00
30.00 25.00
W1
W2
Note 1
62,759
(61,827)
932
(886)
(825)
6
(773)
(40)
Note 2
40
250
290
2,645
(6,670)
4,025
WORKINGS
W1: Cash receipts from customers
Sales for the year after elimination of inter-company sales (65,000-140)
Increase in trade debts (7,534-5,421)-(140x40%)+44
64,860
(2,101)
62,759
58,978
2,472
(664)
3,000
(90)
(44)
2,000
175
6,1827
Workings
Cash flow from operating activities
Profit before tax
Adjustments for: Finance cost
Gain on sale of subsidiary
Income from associate
Depreciation
Goodwill impairment
(102)
(185)
45
(242)
(1,055)
(2,970)
(4,025)
Rs. (m)
11,150
350
(1,000)
(1,150)
3,850
800
(250)
2,600
13,750
2
2
2
Cost of investment
NCI at fair value
FV of net assets
Goodwill at acquisition
(8,000)
(14,200)
2,750
8,000
850
(10,600)
1,900
(1,250)
(500)
150
700
1,400
2,100
WORKINGS
W-1 Goodwill Impairment
Goodwill as on January 01, 2014
Add: goodwill of subsidiary acquired during the year
Less: goodwill of subsidiary disposed off during the year
Less: goodwill as on December 31, 2014
Impairment (balancing figure)
W1.1 Goodwill of acquired/disposed off subsidiaries
(500)
300
(250)
(450)
13,300
(300)
(1,850)
11,150
Inventory
4,350
1,500
(1,650)
4,200
(4,700)
(500)
1.1
1.1
Gomel
15,000
3,400
(14,900)
3,500
Receivables
3,300
2,400
(1,500)
4,200
(3,900)
300
18,500
3,500
(1,900)
(19,300)
800
Stone
6,000
3,200
(7,300)
1,900
Payables
7,250
1,800
(800)
8,250
(8,000)
250
(3,525+1,050)
4,575
400
2,250
(5,375)
1,850
16,250
12,800
(7,250)
(3,850)
2,000
(2,500)
(25,450)
(8,000)
5,400
1,650
(6,200)
850
3,200
1,200
3,400
(4,200)
(3,100)
500